Product Safety

Holiday Shoppers Beware: Online Marketplaces Present Serious Consumer Protection Crisis

By Courtney Griffin

As the holiday season quickly approaches, millions of U.S. consumers are expected to turn to online marketplaces for their gifts and seasonal
purchases. Because the convenience and diversity of available products are just a click away, online shopping is now a dominant player in the retail landscape. U.S. online shopping totaled $1.34 trillion in 2024, with projections that online spending will exceed $2.5 trillion in 2030. An estimated 288 million Americans—or approximately 84.3%—shop online, and online shopping currently represents 18.4% of retail revenue in the U.S.

Unfortunately, investigations by consumer organizations and regulators have documented serious product safety issues, demonstrating a significant number of products purchased from third-party sellers on online marketplaces fail safety standards, including toys with choking hazards, electronics that pose fire and electric shock risks, and counterfeit safety equipment like smoke alarms and helmets. These product safety issues are
particularly concerning when combined with the tactics online marketplaces use to encourage people to purchase more products, more quickly.